Introduction: -commitment to socially responsible behaviour is good business for both public and private sectors. Every organization should always make balance between profit and social responsibility. Business organization is run by profit motive but profit maximization should not be sole aim.
Definitions: - "The personal obligations of the people as they act in their own interest to assure that the rights and legitimate interests of others are not ignored." Defined by.......... (Koontz and O'Donnell)
The following points bring out the case for social responsibility of business:
1. Concept of Trusteeship: -Commercial organization operates within society. They are a part of society. Now it is realized that activity which is not good for public is also not good for business. This is theory of trusteeship. According to this principle, "A business must be held in trust, legally and morally for the benefit of people." Businessmen are considered to be trustees of the society.
2. Changing Expectations of society: -World is changing, growing and expanding very rapidly. Over the years, social demand shave changed and business should respond them positively. Awareness about rights is increasing among people. Overall knowledge level increased. In addition, it should not allow doing anything which is harmful to society.
3. Projecting favorable public image: -A business which responds favorably to social need creates a good market reputation and goodwill. It also imprints good public image. Ultimately, organizations which care for its employees, consumers and society will be respected by them.
4. Protection of Environment: -Business uses natural wealth and human resources to produce goods and services. Business organizations should make proper use of country's natural resources. They should avoid environmental pollution and ecological imbalance. It becomes moral duty of business to take care of welfare of society. "Syngenta" has started a project "Krishi Shakti Kendra" to various places in India to protect environment.
5. Better and optimum utilization of resources: -Generally large business has huge surplus resources in terms of finance, manpower, talent and functional expertise. Business should use all resources for expansion and also for society's benefit. They should provide better life and welfare to different social groups. For e.g. TATA Tea adopted policy to minimize damages to environment.
6. Trade Union's Pressure: -In modern times, workers have become conscious of their rights and privileges. Trade unions are growing fast and play important role in business environment. The employees have realized that their efforts contribute to the profits of business. So they always come up with new demands. To avoid such conflicts, business should understand responsibility and act accordingly.
7. Growth of consumer Movement: -consumer movement is the movement against business malpractices. It is grounded in India long years back. Today's age has organized consumerism. Consumers when organized cannot accept any injustice by business. They have raised voice against unfair trade practices.
8. Government Control: -Government has enacted laws such as Consumer Protection Act, Air pollution Act and food Adulteration Act, etc. there are as many as 30 environmental legislations in limits then there is fear of strict government control. Government's main aim is to create favorable atmosphere for economic and industrial growth.
9. Role of media: -Media plays important role i public life. Now a day, reach of media to common people is very easy through internet. Media has power to speak against wrong policies of business. It is very vibrant (live) and active. Media can influence masses in society.
